Zero defect quality in the Automobile Industry:

A SIX SIGMA Perspective

Six Sigma is a business management strategy originally developed by Motorola. As of 2009[update], it enjoys
widespread application in many sectors of industry, although its application is not without controversy. Six
Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects
(errors) and minimizing variability in manufacturing and business processes. It uses a set of quality
management methods, including statistical methods, and creates a special infrastructure of people within the
organization ("Black Belts", "Green Belts" etc.) who are experts in these methods.

Increasing competition has meant that more and more companies are on the look-out for a sustainable concept
to optimise company processes in terms of quality, time and cost. Six Sigma is the perfect solution if introduced
in its entirety and applied consistently, if the company managers and directors provide their full commitment,
and if there is a company culture which encourages transparency of errors, stringent project control and a desire
for quantitative results. Automobile manufacturers have recognised this and demand zero defect quality from
their suppliers. Companies who develop a high level of Six Sigma expertise at an early stage will achieve
significant cost reductions and gain competitive advantages.

THE THREE PILLARS OF SIX SIGMA

The customer in the Six Sigma concept:

1. The .voice of the customer. (VOC) is the foundation of any Six Sigma process analysis and improvement
measure.

2. The .Critical To Quality Characteristics. (CTQ) define the required process results from the customer’s point
of view and represent the company’s factors for success.

3. The higher quality of (preliminary) products and services through Six Sigma makes industrial users as
customers more successful in their respective market and creates the basis for multi-stage .Value Marketing.

The process in the Six Sigma concept:

1. In all Six Sigma projects, there is a bi-lateral focus on the process map. On the one hand, an outside-in
analysis examines how central customer requirements as critical factors for success (CTQs) are fulfilled in
current processes and how they should be better fulfilled in the future. On the other hand, an inside-out analysis
studies the decisive value drivers and core competences, which must be developed to respond to these.

2. The quality vision (from the customer’s point of view) is then not only formulated in the business model, but
concretely implemented in all key added value processes. This is achieved in all Six Sigma projects by the
completion of SIPOC analyses, i.e. the examination of key process stages in the supplier, input, process, output
and customer chain. The analysis establishes output, process and input measurements necessary to achieve the
required outcome.

3. Errors are defined based upon the central customer requirements and subsequently by the business strategy.
Both are implemented in internal process and performance standards, to distinguish the company from the
relevant competitors.

Quality in the Six Sigma concept:

1. The stated aim of Six Sigma is . as already mentioned . practical zero defect quality. From a statistical point
of view, this represents an error rate of 3.4 defects per 1 million opportunities. The basis for calculation is the
standard normal distribution. This means that 99.99966 per cent of products lie within a (tolerance) range of
±6σ at a mean shift of ±1,5σ.

2. The tolerance range for quality is defined by the levels of deviation accepted by the customer in accordance
with the customer requirements. The tolerance range is only reduced if internal process/performance standards
are structured more .harshly. in accordance with the business strategy.

3. Minimising process variance within the defined tolerance range and centring the process status, i.e. ensuring
that processes adhere rigidly to the CTQs, is at the centre of all Six Sigma improvement activities.

RELATIONSHIP BETWEEN SIX SIGMA AND CUSTOMER SATISFACTION